INSOLVENCY PRACTITIONERS learned they are to receive little respite from the difficult trading conditions that have blighted the market for past two years with administrations and personal insolvencies hitting new lows.
Data released by the Insolvency Service today shows that the number of administrations in 2014 hit its level since 2007, while the number of people who became insolvent fell for the fourth consecutive year, to the lowest annual level in almost a decade.
Work has been thin on the ground. Corporate insolvencies for the calendar year 2013 fell 9% to 18,856 from 20,749, while bellwethers of the profession such as Begbies Traynor have posted reduced sales and lower profits.
According to Mark Sands, personal insolvency partner at Baker Tilly, the downward trend will continue throughout 2015, although longer term the outlook is less certain,
“With continued low interest rates and falling inflation creating a feel-good factor, there is a danger that many will over-extend themselves, and we are already seeing a significant rise in unsecured lending,” he said.
The outlook for financial services work also work bleak with restructuring activity set to decrease further in 2015 for the UK banks, according to Deloitte.
Nick Edwards, head of restructuring at Deloitte, said: “The relative health of the UK economy, and the action banks have already taken on deleveraging, will keep restructuring levels down. We have also seen a retreat from big corporate lending, and a renewed focus on retail banking.”
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies
Smith & Williamson has been appointed administrators of charity 4Children